TOB_Magazine

[ 64 ] TOBACCO BUSINESS [ MAY / JUNE | 18 ] Alternatives to combustible cigarettes have been steadily gaining market share, and market observers expect that ascent to continue through the rest of 2018. “We expect the category will grow around 25 percent to $5.5 billion in [sales for] 2018, given strengthening e-cig/ vapor innovation ahead of the eventual commercialization of superior technology,” wrote Bonnie Herzog, Wells Fargo Securities tobacco analyst, in a recent report on the industry. By “superior technology,” Herzog was referring to Phillip Morris’ iQOS heat-not-burn device, which is slated to hit the U.S. market this year. IQOS has been received favorably in Japan and other foreign markets, including Greece, Russia, Germany and Spain, and it is expected to be well-received domestically. ➤ VAPOR Driven by Innovation Fueled by new offerings, demand for vapor and e-cigarette products continues to grow. BY JENNIFER GELFAND